Resilient Growth and Strategic Enhancements Justify Buy Rating for Mapletree Commercial

Mapletree Commercial (MPCMF – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Jonathan Koh from UOB Kay Hian maintained a Buy rating on the stock and has a S$1.62 price target.

Jonathan Koh has given his Buy rating due to a combination of factors that highlight the resilience and potential of Mapletree Commercial’s portfolio. Despite challenges from overseas assets, VivoCity emerged as a standout performer with a notable increase in net property income and high occupancy rates. The ongoing enhancements at VivoCity, particularly in its basement 2 area, have shown promising results with a significant positive rental reversion and tenant sales exceeding expectations.
Additionally, the company’s financial metrics, such as a favorable distribution yield and a reduction in aggregate leverage, reflect a stable financial position. The strategic divestment of Mapletree Anson has allowed for debt repayment, reducing finance costs. While overseas contributions faced headwinds, the domestic properties in Singapore demonstrated organic growth, bolstered by lower utility costs and strategic asset enhancements. These factors collectively underpin Jonathan Koh’s confidence in the stock’s future performance, justifying the Buy rating.

In another report released today, DBS also maintained a Buy rating on the stock with a S$1.80 price target.